The UK's largest grocer continues to bet on non-supermarket ventures

Tesco has taken full ownership in artisan-style coffee chain Harris + Hoole, in a sign the supermarket giant is not giving up on its attempts to diversify into non-grocery ventures.

The retailer, which had owned 49pc of the coffee chain it helped set up in 2012, has now bought the remaining 51pc for an undisclosed amount.

Harris + Hoole was launched by Australian siblings Nick, Andrew and Laura Tolley, who also run London-based coffee chain Taylor St Baristas.

When current Tesco chief executive Dave Lewis took over in September 2014, City watchers expected the coffee chain could be sold as the grocer attempted to keep a tighter rein on finances.

However, since then Tesco's coffee venture has expanded rapidly, albeit at a cost. Losses at Harris + Hoole doubled last year after store numbers jumped from 23 to 43. Pre-tax losses rose to £25.6m in the year to the end of March 2015, compared to £12.8m in the previous financial year.

There are currently 43 Harris + Hoole stores across the UK Photo: Bloomberg

Under the tenure of former chief executive Philip Clarke, Tesco saw the move into coffee as an opportunity to drive footfall into its vast Extra stores and tap into the growing casual dining scene. Three years ago, the supermarket chain also invested in Islington bakery Euphorium, and last year took full ownership of the business.

Tesco’s sales fell 1.6pc in the 12 weeks to the end of January, according to data from retail research firm Kantar. Sainsbury's was the only supermarket within the 'big four' to post a rise in sales.